Dental insurance isn't cut and dried. There are different plans, and then variations within those plans. Take time to get to know each plan before making a choice.

Most expensive: direct reimbursement plans
Direct reimbursement plans operate by paying for dental coverage with a pool of money that the company sets aside specifically for this purpose.

This self-funded plan's greatest strength is that it's straightforward - employees are reimbursed according to a simple formula that does away with the complexity of deductibles and the like.

Unfortunately, even though this is the type of plan that the American Dental Association recommends, directly covering the cost of dental care can be cost-prohibitive for small businesses.

Less expensive: indemnity plans
Indemnity plans can be more feasible. Premiums are paid to an insurance company; in turn, the insurance providers pay dentists for the treatments they provide.

Premiums are set for the year with indemnity plans so as a business your costs are known. But as for your employees, costs are a little less straightforward.

Insurance companies generally use UCR (usual, customary and reasonable) rates to base their reimbursements to dentists-- if the UCR rates used to pay dentists is less than the dentist's rate, the patient can potentially be on the hook to make up for the shortfall.

Patients also need to pay a deductible, averaging $50, and then a portion of the remaining amount - what is known as a co-payment. An average plan covers 100% for preventive measures like cleanings, 80% for basic work like a crown or cap, and 50% for major procedures like oral surgery

Least expensive: managed care plans
Like a medical HMO, managed care dental plans require that patients choose from a pool of dentists and pay a co-payment for treatment.

Unlike the fee-for-service plans above, managed care plans do have cost-control measures and can be a little more affordable for small businesses.

The co-payment amount can vary according to procedure, though. While preventive procedures usually are performed without a co-payment, more advanced procedures will have higher co-payments.

There are two types of managed care programs.

PPO. Preferred Provider Organization programs consist of a network of dentists. The dentists within the network have discounted their fees in order to participate in the plan.

Employees have to pick from this pool, or pay penalties (a higher deductible or co-payment) to go to the dentist not in the network.

DHMO. Dental Health Maintenance Organization plans work like PPO plans. Patients choose from a network of dentists.

Instead of just discounting their fees, dentists will perform specific treatments for free. Dentists are paid a fixed fee per individual-even if the patient never even receives treatment. In turn, the dentists will provide treatment for free (for something involved or for frequent visits by one individual, a co-payment or fee may be charged).